LONDON Feb 19 (Reuters) - European shares rallied on
Tuesday, with stronger than expected German sentiment data
prompting investors to return to economically sensitive sectors
like autos and technology after a three session losing streak.

The keenly-watched German ZEW investor sentiment index
jumped to a three-year high this month, beating even the most
optimistic economist forecasts.

The data gave an early flavour of the kind of economic
improvement that strategists and investors are counting on to
fuel European equity market gains for this year.

"Some investors are asking if the improvement in leading
indicators is sustainable, and we think it is," said Andreas
Huerkamp, equity strategist at Commerzbank.

"The start of recovery of leading indicators should continue
and then, in the second quarter, companies will start to become
more optimistic again  That should trigger the next upwards
move in the market."

A strong start to the week on Wall Street - which had
been closed on Monday for a public holiday - also fuelled
appetite for European equities, helping the market extend gains
in afternoon trade.

The pan-European FTSEurofirst 300 index provisionally closed
up 1.1 percent at 1,172.23 points - more than recovering the
previous three session's losses to post its best finish in three
weeks.